Google Ads Is Changing Target ROAS: What Does "Review Your Campaign Targets" Actually Mean?
Google changed Target ROAS bidding on August 17, 2026. What the change means for your ROAS, your budget and campaigns that are limited by budget.
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If you use Target ROAS in Google Ads, you may have seen this notice in your account:
Sounds complicated. It isn't. But it does make one thing much more important:
The Target ROAS you're giving Google needs to be the right one.
Not sure what ROAS or Target ROAS means? Read our guide: What Is ROAS and How Do You Calculate the Right Target ROAS?
Let's make Google's update ridiculously simple
Imagine you have a Google Shopping campaign with these settings, and Google tells you the campaign is limited by budget:
Target ROAS
4.6
Daily budget
CHF 200
Actual ROAS
6.0
Status
Limited
by budget
That's a nice problem to have. You told Google you need a ROAS of 4.6, and Google is giving you 6.0. So naturally you might think: fantastic, let's give Google more money. You increase your budget from CHF 200 to CHF 300 per day.
And this is where the problem used to start.
What happened before?
Your campaign was performing at a ROAS of 6.0, but after increasing the budget you didn't really know what would happen. Maybe your ROAS stayed at 6.0. Maybe it dropped to 5.5, or 4.9, or even below your 4.6 target. The extra budget could produce more sales, but the effect on efficiency could be unpredictable.
What changed on August 17, 2026?
Google changed how target-based bidding behaves when campaigns are Limited by budget. Google now says these campaigns should perform more consistently toward the Target ROAS you've actually set, including after budget changes.
| Aspect | Before August 17 | After August 17 |
|---|---|---|
| Actual ROAS after the increase | Anywhere: 6.0, 5.5, 4.9 or below 4.6 | Moves toward your target of 4.6 |
| Predictability when scaling | Low | Higher |
| What Google optimises for | Roughly your target | Your target, taken more seriously |
So let's go back to our campaign: Target ROAS 4.6, actual ROAS 6.0, budget CHF 200, status limited by budget. Under the new behaviour, you may increasingly see your actual ROAS move closer to 4.6. That doesn't necessarily mean your campaign is performing worse. It means Google is taking the target you gave it more seriously.
But my ROAS is 6.0. Why would I want 4.6?
Because hopefully you've calculated that 4.6 is profitable for your business. If that's true, you don't necessarily need Google to achieve 6.0. Of course, 6.0 is lovely. But if Google can generate significantly more sales at 4.6, that may be better for your business than generating fewer sales at 6.0.
The goal isn't the highest possible ROAS. The goal is profitable growth.
So should I increase my budget?
Maybe. Let's say your campaign now looks like this:
Target ROAS
4.6
Actual ROAS
about 4.6
Status
Limited
by budget
You've told Google: "A ROAS of 4.6 works for my business." Google is achieving approximately that, and Google is telling you that your budget is limiting the campaign. If you want more sales, increasing your budget may allow Google to generate more conversion value while staying more consistently around your 4.6 target.
That's the important part of this update: scaling a budget-constrained Target ROAS campaign should become more predictable.
But don't automatically increase your budget
Limited by budget doesn't mean: spend more money immediately.
Check before you add budget
- Seasonality. Maybe your season ends next week.
- Stock. Maybe you're running out of stock.
- Cash flow. Maybe you simply don't want to spend more.
- Your business objectives. More spend has to serve them.
That's fine. The update doesn't mean every Limited by budget campaign needs more budget. It means that if you want to scale, Google says it should now be able to do that more consistently around the Target ROAS you've set.
What if my actual ROAS is higher than my Target ROAS?
You don't necessarily need to do anything.
Target ROAS
4.6
Actual ROAS
6.0
If you've done your homework and 4.6 is genuinely profitable for your business, you can leave the target at 4.6. Just don't assume the 6.0 will continue. Under Google's new behaviour, performance may move closer to the 4.6 you've actually requested. That isn't necessarily bad performance. It's Google doing what you asked it to do.
What if my actual ROAS is below my Target ROAS?
That's different.
Target ROAS
4.6
Actual ROAS
3.8
Google's update doesn't magically turn 3.8 into 4.6, and simply changing your budget isn't necessarily going to solve it. You need to find out why the campaign is underperforming. That's a Google Ads problem you need to investigate.
Where the gap usually comes from
- Campaign structure
- Product selection
- Product feed
- Bidding
- Pricing
- Conversion tracking
- Competition
- Or you may simply not have enough data yet
The most important number is still your Target ROAS
This whole Google update ultimately comes back to one question:
Because Google is now going to take that number more seriously. If you tell Google "4.6 is good enough for my business", you'd better know that 4.6 really is good enough. If you don't know, start here: What Is ROAS and How Do You Calculate the Right Target ROAS?
Need help?
At Wolf+Bär, we help ecommerce businesses make Google Ads profitable. If you're unsure whether your Target ROAS is actually right for your business, book a free ROAS Check. If you know your Target ROAS is right, but your campaigns consistently fail to achieve it, book a free Google Ads Audit instead.
Want to go deeper?
If you want to go deeper on this yourself, read Google's help article on the update, which also includes YouTube videos explaining the change.
The update itself isn't complicated. Google is essentially saying: